State Sues Company That Sets Up Vendors

Representatives of a company that sets up people in the soft-drink vending business have been sued in Orange Circuit Court and accused of violating Florida's Sale of Business Opportunities Act.

Assistant State Attorney Keith Johnstone filed the suit last week against Charles Morse and Harry Sheing and their company, Continental Beverage Inc.

Johnstone accused them of failing to provide a written disclosure statement to buyer Larry Yarchuk at least three days before he signed his contract and for making false or misleading statements to Yarchuk when selling the route. Johnstone asked the court to block Morse and Sheing from further violations and to order the company to return Yarchuk's money.

The suit, which was filed after an investigation by the Orange County Consumer Fraud Unit, was prompted by a complaint from Yarchuk, who lives in Edgewater. He bought nine beverage vending machines from Continental Beverage for $13,990 last November.

The suit charged that the company failed to deliver Yarchuk's machines in 45 business days, as specified in its contract.

In addition, it said that while the company ad promises a ''huge return on investment,'' six of the seven machines in place for Yarchuk net about $4 to $9 a week.

It also said that Morse stated the company had an agreement with a local beverage supplier to provide soft drinks at $5.50 a case, delivered to Yarchuk's home. But the suit claims no agreement exists and Yarchuk has to purchase drinks at a higher price.

Morse, a salesman operating out of the company's Orlando office, declined to comment on the suit Wednesday. Sheing, a vice president working out of the company's Delaware office, said he was not aware of the suit.

Business opportunity plans cause a lot of headaches for consumers, said Bill Lipham, head of Orange's Consumer Fraud Unit. He said consumers should approach such plans with care, study disclosure statements, get the advice of a lawyer or other knowledgeable business person and talk to those who already have bought into the business.